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Sunday, December 27, 2009

Saving Money by Avoiding Impulse Spending

The questions below will help determine whether one is an impulse spender. Don’t cheat so be honest with your answers.

1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives at how much more you charged than you previously thought?
3.) Do you have more shoes & clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
5.) Do you buy things you didn’t know you wanted until you saw them on display in a store?

By having answered “yes” to any two of the above questions, you are an impulse spender & be prepared to indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving money for the important things like a house, a new car, a vacation or retirement. You must set some financial goals & resist spending money on items that really don’t matter in the long run. Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers flood us with their hype & product promotions 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned to buy. When you go shopping, make a list & take only enough money to pay for what you have planned to buy. Leave your credit cards at home.

When seeing something you think you really need, give yourself two weeks to decide its legitimacy. Is it really something you need or something you can easily do without? By following this simple solution, you will mend your financial fences & your relationship as well.